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NewBase Energy News 24 September 2022 No. 1552 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E: Adnoc and Taqa conclude $3.8bn clean energy &
decarbonisation deal
The National + NewBase
Abu Dhabi National Oil Company and Abu Dhabi National Energy Company, better known as Taqa,
have closed their $3.8 billion strategic project to power and decarbonise Adnoc's offshore
production operations.
A consortium comprising Korea Electric Power (Kepco), Kyushu Electric Power Company (Kyuden)
and Electricite de France (EDF), will build, own, operate and transfer (BOOT) the high-voltage direct
current (HVDC) sub-sea transmission system alongside Adnoc and Taqa, the two Abu Dhabi
companies said in a joint statement on Friday to the Abu Dhabi Securities Exchange.
The Kepco-led group of companies collectively holds a 40 per cent stake in the project on a BOOT
basis, with Adnoc and Taqa each owning a 30 per cent stake. The full project will be returned to
Adnoc after 35 years of operation. Given higher interest rates at the time of financial closing, the
project's cost is higher, compared to $3.6bn when it was initially announced in December 2021.
The project to build a transmission system is expected to reduce the
carbon footprint of Adnoc's offshore operations by more than 30%
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"Adnoc has once again demonstrated its ability to successfully structure and close a bold and
progressive transaction that will help secure our low-carbon future as we intensify our efforts to
decarbonise our operations," said Dr Sultan Al Jaber, UAE Minister of Industry and Advanced
Technology and managing director and group chief executive of Adnoc.
"Adnoc will continue to work with our partners to advance practical and commercially viable
solutions as the energy transition partner of choice.”
The development is expected to reduce the carbon footprint of Adnoc's offshore operations by more
than 30 per cent, replacing existing offshore gas turbine generators with more sustainable power
sources from the Abu Dhabi onshore power network.
The transmission system will have a total installed capacity of 3.2 gigawatts and comprise two
independent sub-sea HVDC links and converter stations that will connect to Taqa’s onshore
electricity grid — operated by its subsidiary, Abu Dhabi Transmission and Despatch Company
(Transco).
With construction starting earlier this
year, commercial operations of the
project are expected to start in 2025,
the statement said.
The project also offers the potential for
Adnoc to more effectively utilise its rich
gas — currently being used to power
the offshore production facilities — for
higher-value purposes that will allow
the company to generate additional
revenue.
“Reaching financial close is an
important milestone for this distinctive
project, which will see Taqa providing
Adnoc offshore facilities with low-
carbon energy securely and efficiently
through Transco’s power network
system," said Mohamed Al Suwaidi,
chairman of Taqa.
"Taqa continues to showcase how its expertise can be utilised to decarbonise industry through
strategic partnerships and bringing value to its stakeholders.” More than half of the value of the
project, which aims to to strengthen Adnoc and Taqa's positions in supporting the UAE’s Net Zero
by 2050 strategic initiative, will flow back into the UAE’s economy under Adnoc’s In-Country Value
(ICV) programme.
It will also attract large-scale investment into the UAE and Adnoc from global energy companies,
reinforcing Adnoc’s role in sustainable investment and value creation for Abu Dhabi and the UAE.
Combined investment from the consortium, commercial lenders and export credit agencies yielded
more than $3bn in foreign direct investment, underscoring the UAE’s standing as a trusted global
investment destination.
“This innovative and first-of-its-kind project in the region is driving responsible and sustainable value
creation into Abu Dhabi, further cementing the UAE’s standing as a trusted, go-to investment
destination of global capital,” Dr Al Jaber said
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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UK: IGas Energy responds to Government’s Written Ministerial
Statement on shale gas extraction. Source: IGas
IGas welcomes the Government’s support and commitment to the timely development of
domestic gas as laid out in the Written Ministerial Statement (WMS) released today from
the Department of Business, Energy and Industrial Strategy.
We particularly welcome the commitment to “more exploratory sites in order to gather better
data and improve the evidence base”. IGas looks forward to assisting with this process and will
gladly provide the government with its detailed proposals for accelerated development.
The full text of the WMS can be found at https://questions-statements.parliament.uk/written-
statements/detail/2022-09-22/hcws295
As we have said before, the development of this strategic natural resource, which we believe
is imperative in helping with the ongoing energy and cost-of-living crises, can only be achieved
through further streamlining of the regulatory process. We look forward to further engagement with
the Government as policy evolves.
Commenting Chris Hopkinson, IGas Interim Executive Chairman said:
'This is a significant statement from Government and we welcome the commitment to pursue
secure and affordable supplies of domestic energy.
The development of IGas’ shale gas assets has the potential to provide secure and affordable
energy for the UK in the near term, helping to decouple the UK from volatile and competitive
international gas markets. Aside from the clear benefits in job creation and balance of payments
through producing indigenous natural gas, we will support local communities with a comprehensive
benefit package.'
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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UK dishes out extensive tax cuts as country braces for recession
CNBC - Jenni Reid + NewBase
The new U.K. government announced a sweeping program of tax cuts and investment incentives
Friday, as Prime Minister Liz Truss seeks to boost the country’s faltering economic growth.
Speaking to the House of Commons, Finance Minister Kwasi Kwarteng said the government wanted
a “new approach for a new era focused on growth” and was targeting a medium-term 2.5% trend
rate in economic growth.
KEY POINTS
 The government will cancel a planned rise in corporation tax to 25%, reverse a recent rise in
income tax, and cut taxes for businesses in designated investment zones
 The Bank of England yesterday said the U.K. was likely already in a recession
U.K. Chancellor Kwasi Kwarteng outside 10 Downing Street. Britain will cap the cost of electricity
and gas for businesses.
“We believe high taxes reduce incentives to work, deter investment and hinder enterprise,”
Kwarteng said.
The measures include:
 Cancellation of a planned rise in corporation tax to 25%, keeping it at 19%, the lowest rate in
the G-20.
 A reversal in the recent 1.25% rise in National Insurance contributions — a tax on income.
 A reduction in the basic rate of income tax from 20 pence to 19 pence.
 Scrapping of the 45% tax paid on incomes over £150,000 ($166,770), taking the top rate to
40%.
 Significant cuts to stamp duty, a tax paid on home purchases.
 A network of “investment zones” around the U.K. where businesses will be offered tax cuts,
liberalized planning rules and a reduction in regulatory obstacles.
 A claim-back scheme for sales taxes paid by tourists.
 Scrapping of an increase in tax rates on various alcohols.
 Scrapping of a cap on bankers’ bonuses.
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The government estimates the tax cuts will total £45 billion by 2026-27.
“It’s half a century since we’ve seen tax cuts announced on this scale,” said Paul Johnson, director
of the Institute for Fiscal Studies.
The pound fell to a fresh 37-year low against the dollar below $1.103 in the hours after the
announcement, while investors ditched U.K. government bonds and the FTSE 100 fell to its lowest
level since March. Johnson said markets appeared “spooked” by the scale of the “fiscal giveaway.”
Sterling hits new 37-year low against the dollar
It comes a day after the Bank of England said the U.K. economy was likely to have entered an
official recession in the third quarter, as it hiked interest rates by 50 basis points to combat decades-
high inflation. The economy contracted by 0.1% in the second quarter amid a squeeze in real
incomes.
Despite containing extensive reforms, Friday’s package is not being described by the government
as an official budget as it has not been accompanied by the usual economic forecasts from the
Office for Budget Responsibility.
UK to cap domestic energy prices, end fracking ban
Critics of the proposals warn that the combination of extensive tax cuts and the government’s plan
to shield households and businesses from soaring energy prices will see the U.K. take on high
levels of debt at a time of rising rates. The energy support package is expected to cost more than
£100 billion ($111 billion) over two years.
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Data published Wednesday showed the U.K. government borrowed £11.8 billion in August,
significantly above forecasts and £6.5 billion more than the same month in 2019, due to a rise in
government spending.
Kwarteng said Friday the U.K. had
the second-lowest debt to GDP ratio
in the G-7 and would announce a
plan to reduce debt as a percentage
of GDP in the medium term.
On energy, he said price caps would
reduce peak inflation by 5
percentage points and lower the
wider cost-of-living pressures. He
also announced an energy markets
financing scheme, in conjunction
with the Bank of England, that will
offer a 100% guarantee to
commercial banks who offer
emergency liquidity to energy
traders.
The opposition Labour party argued that the tax cuts will disproportionately benefit the wealthy and
be funded by unsustainable borrowing.
Speaking in the Commons, Kwarteng’s Labour opposite Rachel Reeves called the plans trickle-
down economics and quoted U.S. President Joe Biden, who this week said he was “sick and tired”
of the policy and that it had never worked.
‘Seismic shift’
“As fiscal events go, this was a seismic one,” said Chris Sanger, head of tax policy at accountancy
EY.
“The reversal of the decision to deny VAT rebates for travellers leaving the UK, only implemented
on leaving the EU, and the introduction of new super-powered special economic zone, reinforce the
message that the UK wants to attract foreign direct investment and travellers. In essence, the
government is doubling down on growth, providing tax cuts across the board,” he said in emailed
comments.
Shevaun Havilland, director general of the British Chambers of Commerce, said pledges to focus
on growth and speed up infrastructure development would be welcomed by businesses. “The
introduction of investment zones also has the potential to finally deliver on the Government’s long-
standing promise to level up, if the scheme is truly UK-wide,” he said.
“Lessons also need to be learned from the past, it will be crucial to get these zones right from the
start, otherwise they can simply displace growth and investment from one area to another without
creating new economic activity.”
The Institute for Fiscal Studies, an economic research group, warned that “setting plans
underpinned by the idea that headline tax cuts will deliver a sustained boost to growth is a gamble,
at best.”
Meanwhile Torsten Bell, chief executive of think tank the Resolution Foundation, said the policies
were a “simply staggering huge tax cut for richer households.”
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Spain: Abdul Latif Jameel Energy unit to build solar plant in Spain
TradeArabia News Service
Leading developer of sustainable energy solutions Fotowatio Renewable Ventures (FRV), part of
Abdul Latif Jameel Energy, has reached a financial close on the Carmonita Norte solar PV cluster
in Extremadura, Spain.
With a capacity of 123 MWdc, the
Carmonita Norte cluster will be the first of
the three projects that the Carmonita
node will host. Covering an area of 356
hectares, the Carmonita Norte cluster
will produce around 260 gigawatt hours
(GWh) of clean energy per year, which is
enough to supply energy to
approximately 93,600 Spanish homes,
while avoiding the emission of around
193,000 tons of carbon dioxide (CO2),
said a statement.
The Carmonita Norte cluster joins
several solar photovoltaic projects that
the company currently has in
Extremadura both in operation (La Solanilla, 50 MWp, and the San Serván 220 cluster, 138 MWp
divided into three projects), and under construction (the San Serván 400 cluster, 150 MWp divided
into three projects), reaching a total of 461 MWp executed. Together with the solar projects currently
under development, the total projects will deliver a forecasted 1.1 gigawatts (GW) in the region in
South-West Spain.
For the construction, FRV has reached a financing agreement under the Project Finance modality
with MUFG, ING and Santander Corporate & Investment Banking (CIB) for a total amount of Euro
80.9 million. Once the plants are operational, the project's revenues will be guaranteed by a long-
term Power Purchase Agreement or PPA.
It is estimated that the first plant of the Carmonita complex will be fully operational by the end of
2023, which will contribute to the Long Term Decarbonization Strategy (LTS) promoted by the
Spanish Government, which sets out the path to achieve Greenhouse Gas (GHG) emissions
neutrality in Spain by 2050.
Fady Jameel, Deputy Chairman and Vice Chairman of Abdul Latif Jameel, said: "FRV has made
impressive progress in expanding its portfolio of renewable energy projects, not only in Spain, but
around the world. This expansion is a testament to our commitment to delivering clean energy
solutions in key global markets and we are proud to have the opportunity to bring clean energy to
Extremadura while supporting Spain's broader decarbonization strategy."
Fernando Salinas, Managing Director of FRV Iberia, said: "The financial closing of the Carmonita
Norte cluster is great news for FRV, which continues to expand its clean energy portfolio in Spain
and, thus, consolidate its role as a leading renewable energy company, as well as for Extremadura,
which has unbeatable conditions to host projects that allow clean energy to continue growing, with
the positive impact that this has both environmentally and on the local community, generating wealth
and employment in the region." -
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China increased electricity generation annually from 2000 to 2020
U.S. Energy Information Administration, International Energy Statistics
China has steadily increased its electricity generation over the past 20 years, reaching 7,600
terawatthours (TWh) in 2020 from 1,280 TWh in 2000, according to our recently updated Country
Analysis Brief: China. Despite COVID-19 mitigation efforts in 2020, China still expanded its
electricity generation by 5% in 2020.
China has been increasing the share of non-fossil fuels in its electricity generation, but coal remains
a predominant source. In 2020, China generated 4,775 TWh from coal-fired power plants, a 63%
share of China’s electricity generation.
In 2000, coal accounted for 77% of China’s electricity generation (992 TWh). In the intervening 20
years, non-fossil fuels, including hydroelectric, wind, and solar generation, grew to 27% (2,058 TWh)
of China’s generation mix, from 17% (221 TWh) in 2000. Solar has been the fastest-growing
generation source and grew by an average of 43% each year from 2015 to 2020. Solar accounted
for 6% of China’s electricity generation in 2020.
In 2021, China’s government issued its 14th Five-Year Plan (2021–2025) for National Economic
and Social Development of the People’s Republic of China. The plan sets out China’s strategy for
industry planning and policy through 2025 and prioritizes China’s low-carbon and carbon-neutral
initiatives. The plan sets numerous goals, including to:
 Achieve its goal to reach peak carbon emissions by 2030 after which its target is to have
carbon emissions decline
 Become carbon neutral by 2060
 Reach a 39% non-fossil fuel share for electricity generation by 2025
Despite the carbon goals in China’s Five-Year Plan, coal will remain an important fuel in China’s
electric power sector in the near term. In total, China approved 46.1 gigawatts of coal-fired power
plant projects in 2020. Natural gas, however, is replacing some of the coal-fired capacity in the
eastern region of China, where power demand is higher than in the rest of the country, and the
northeastern region, where stricter environmental regulations have reduced coal-fired electricity
generation.
China remains the world’s most populous country, with a population of 1.4 billion people in 2020, and has a
fast-growing economy. Our data show that in 2020, more energy was produced and more energy was
consumed in China than in any other country. We expect that China’s energy demand will continue to
increase.
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NewBase September 24 -2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil Set for Fourth Weekly Loss as Rate Hikes Darkening Outlook
Bloomberg + NewBase
Oil headed for the longest stretch of weekly losses this year as central banks around the world
stepped up their fight against inflation at the cost of growth, which is darkening the outlook for energy
demand.
West Texas Intermediate futures fell 3.3% on Friday and was set for a fourth week of declines. The
Federal Reserve this week gave its clearest signal yet that it’s willing to tolerate a US recession as
the trade-off for regaining control of inflation, while the UK, Norway and South Africa also raised
rates.
Oil price special
coverage
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WTI for November delivery retreated 3.3% to $80.75 a barrel as of 7:58 a.m. in New York. Brent for
the same month declined 2.9% to $87.80.
It’s putting crude on track for its first quarterly loss in more than two years. Prices are also being
pushed lower by a surging dollar -- with the Bloomberg Dollar Spot Index rising to a record high on
Friday -- making commodities priced in the currency more expensive for investors.
The oil price decline is driven by a stronger dollar and “the aggressive monetary policy tightening,”
said Giovanni Staunovo, a commodity analyst at UBS Group AG.
If crude declines further, the Organization of Petroleum Exporting Countries may be forced to cut
output, said Nigeria’s Oil Minister Timipre Sylva. The group and its allies earlier this month agreed
to the first supply reduction in more than a year.
There could be further turmoil ahead with a looming European Union ban on Russia oil. Separately,
member states are also racing to clinch a political agreement within weeks that would impose a
price cap on Russian oil. The push gained momentum after President Vladimir Putin this week
announced a mobilization of troops, escalating the war in Ukraine.
Some of the world’s biggest banks are, however, forecasting a rebound in prices because of low
inventories, and sustained demand despite recession concerns. JPMorgan Chase & Co. forecasts
Brent at $101 a barrel for the final quarter of 2022, while Goldman Sachs Group Inc. sees $125.
“This is going to be a very, very volatile last quarter,” Amrita Sen, chief oil analyst at Energy Aspects
Ltd., said in a Bloomberg television interview. There are “just too many different and contradictory
factors driving prices right now,” she added.
 OPEC may be forced to cut production, Nigerian minister says
 WTI futures drop below $81 a barrel, down about 5% this
week
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NewBase Specual Coverage
The Energy world –September -24 -2022
CLEAN ENERGY
A UK Shale Revolution? Expect More Bump Than Big Bang
By Therese Raphael + NewBase
If there was ever a time for a no-stone-unturned policy to secure the energy supply, this is it.
Wholesale gas prices had already quadrupled in the six months before the invasion of Ukraine. This
week, the new UK government is announcing huge public borrowing to help protect homes and
businesses against soaring energy costs.
It’s no wonder then that even fracking, barred in the UK since 2019, is back on the table. In her first
week in office, Prime Minister Liz Truss announced plans to lift the ban, and the government is also
reportedly considering raising the limits on seismic activity to give the industry more room for
exploration.
The fracking announcement is part of a push to show the government is deregulating in its all-out
drive for growth. And it’s another example of Truss pushing against the grain of public opinion as
she has on removing the cap on banker bonuses. But, it must be asked, to what end?
Any payoff, if it comes, will be far in the future and not the domestic energy bonanza many had
hoped. A lot depends on the UK having commercially viable reserves and sufficient public support
for extracting them.
The first is a hard “maybe” and the second runs up against a wall of local opposition that will be
hard to displace. The founder and former public affairs director of Cuadrilla Resources Ltd. — the
oil and gas exploration company that has been the UK leader in fracking — even say Truss’s move
makes little sense under current conditions.
Fracking may offer some contribution to Britain’s energy supply, but
the benefits won’t be felt for some time and won’t be the revolution
proponents once hoped.
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Hopes for fracking in the UK have long been stoked by the US shale experience, of course. As
the American Petroleum Institute put it, “without fracking, there’d be no American energy
renaissance — or the array of benefits it is providing to our economy, to individual households, US
manufacturers and other businesses.” With its own gas-rich shale formations, it’s tempting to think
this could be Britain, too.
Domestic production from North Sea reserves peaked in 2000, and UK dependency on imported
gas is expected to rise sharply between now and 2050, to 85%.
Proponents have argued that shale gas could provide a secure, stable source of energy and help
diversify supply as Britain moves toward net zero by expanding a resource whose extraction is less
carbon intensive.
It would create jobs and could also have a positive impact on the UK’s balance of payments since
it would mean less money going out to foreign suppliers.
Unexplored Shale
Britain’s main shale-gas reserves overlap with urban areas
Estimates of total gas in place in the north of England are significant, but they don’t tell us what part
of the resource is commercially recoverable. In 2018, Cuadrilla Resources Ltd. noted that testing in
its Lancashire site brought results indicating “excellent” shale gas reserves.
Sand injected into the fractures stayed in place during the flowback phase, and the natural gas that
came to the surface had a high methane content, suggesting less processing would be required to
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deliver it to the local grid. That sounded promising. But the company found that’s a long way to
building a viable industry in the UK.
One big obstacle is public support — or the lack of it. On a densely populated island where
environmental awareness runs high, fracking is highly controversial. A moratorium was imposed in
2011 after two tremors with magnitudes of 2.3 and 1.5 around Cuadrilla’s Lancashire site. That
moratorium was lifted, but by 2019 the Conservative government suspended all fracking
permissions after more tremors near two wells operated by Cuadrilla in Lancashire. Labour, once
an enthusiastic supporter, U-turned a few years earlier.
Cuadrilla likened the tremors to “a large bag of shopping dropping to the floor,” but the backlash
was enough to send the government into defense mode. The risks got exaggerated in the furor, but
if Truss wants to revisit fracking, she’ll first have to redefine “earthquake” in the public’s mind.
Most people prefer zero seismicity in their neighborhood, thank you very much. The UK isn’t prone
to noticeable earthquakes, so people are more likely to find them alarming and official limits are
lower than other countries, notes Ian Stimpson, senior lecturer in geophysics at Keele University.
But fracking works by generating tiny quakes — of magnitudes of minus 1 or minus 2 on the Richter
scale — to cause small fractures in rocks that release gas. (Every two notches up on the scale
represent a thousand-times increase in energy.) The current magnitude 0.5 limit still can’t be felt at
the surface, but a limit that low effectively stops all exploration since operators can’t guarantee they
won’t exceed it.
Because of its different geological profile to the US, there are pre-existing geological faults that
make earthquakes of magnitudes 2 or 3 more likely, Stimson says. Those faults are too small to be
accurately imaged without seismic monitoring systems. But that technology adds a considerable
cost to drilling, as do other necessities such as modern wastewater management and finding ways
to get community buy-in.
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And those costs would need to be piled on top of the other costs of doing business in the UK, which
are considerable. “An operation that in the US, Canada and even Argentina is a rapid piece of
keyhole surgery is in the UK a ponderous, slow-moving and costly operation,” wrote Cuadrilla
founder and geologist Chris Cornelius and former public affairs director Mark Linder, who are no
longer involved in the company.
If shale-gas extraction does go ahead in the UK, it will probably be limited to certain small areas. The
Vale of Pickering in Yorkshire, for example, has potential because conventional gas wells in
operation are already there. “Boreholes just need to be deeper from the same site to penetrate the
Bowland Shale. The lower infrastructure costs might make this more viable,” Keele’s Stimpson says.
The government is holding a report from the British Geological Survey, which is expected to offer
scientific support to the new plans. There’s nothing wrong with reopening those wells under the right
circumstances. But none of the regulatory changes would get UK shale through the many-step
process from estimated reserves to a mature industry overnight.
Nor is the shale debate a replacement for other measures such as increasing investment in
renewables, exploring the potential for geothermal heating and reducing demand through better
insulation in famously drafty British homes. If anything, it will bring a modest bump in the UK’s
energy landscape, but not the once-hoped-for big bang.
Expected UK grid mix composition in 2035, in
terms of total electricity generated
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NewBase Energy News 24 September 2022 - Issue No. 1552 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
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About: Khaled Malallah Al Awadi,
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Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the GCC
area via many leading Energy Services companies. Khaled is the Founder of the
NewBase Energy news articles issues, Khaled is an international consultant, advisor,
ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste
management, waste-to-energy, renewable energy, environment protection and
sustainable development. His geographical areas of focus include Middle East, Africa
and Asia. Khaled has successfully accomplished a wide range of projects in the areas
of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas compressor
stations. Executed projects in the designing & constructing of gas pipelines, gas
metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted
& finalized many contracts/agreements in products sale, transportation, operation & maintenance
agreements. Along with many MOUs & JVs for organizations & governments authorities. Currently dealing
for biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in
numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is
the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over 1400
popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy,
waste management, plant Automation IA and environmental sustainability in different parts of the world.
Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.
Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 16
Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 17
Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 18
Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 19
Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 20

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NewBase 24-September -2022 Energy News issue - 1552 by Khaled Al Awadi.pdf

  • 1. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 1 NewBase Energy News 24 September 2022 No. 1552 Senior Editor Eng. Khaed Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE U.A.E: Adnoc and Taqa conclude $3.8bn clean energy & decarbonisation deal The National + NewBase Abu Dhabi National Oil Company and Abu Dhabi National Energy Company, better known as Taqa, have closed their $3.8 billion strategic project to power and decarbonise Adnoc's offshore production operations. A consortium comprising Korea Electric Power (Kepco), Kyushu Electric Power Company (Kyuden) and Electricite de France (EDF), will build, own, operate and transfer (BOOT) the high-voltage direct current (HVDC) sub-sea transmission system alongside Adnoc and Taqa, the two Abu Dhabi companies said in a joint statement on Friday to the Abu Dhabi Securities Exchange. The Kepco-led group of companies collectively holds a 40 per cent stake in the project on a BOOT basis, with Adnoc and Taqa each owning a 30 per cent stake. The full project will be returned to Adnoc after 35 years of operation. Given higher interest rates at the time of financial closing, the project's cost is higher, compared to $3.6bn when it was initially announced in December 2021. The project to build a transmission system is expected to reduce the carbon footprint of Adnoc's offshore operations by more than 30%
  • 2. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 2 "Adnoc has once again demonstrated its ability to successfully structure and close a bold and progressive transaction that will help secure our low-carbon future as we intensify our efforts to decarbonise our operations," said Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc. "Adnoc will continue to work with our partners to advance practical and commercially viable solutions as the energy transition partner of choice.” The development is expected to reduce the carbon footprint of Adnoc's offshore operations by more than 30 per cent, replacing existing offshore gas turbine generators with more sustainable power sources from the Abu Dhabi onshore power network. The transmission system will have a total installed capacity of 3.2 gigawatts and comprise two independent sub-sea HVDC links and converter stations that will connect to Taqa’s onshore electricity grid — operated by its subsidiary, Abu Dhabi Transmission and Despatch Company (Transco). With construction starting earlier this year, commercial operations of the project are expected to start in 2025, the statement said. The project also offers the potential for Adnoc to more effectively utilise its rich gas — currently being used to power the offshore production facilities — for higher-value purposes that will allow the company to generate additional revenue. “Reaching financial close is an important milestone for this distinctive project, which will see Taqa providing Adnoc offshore facilities with low- carbon energy securely and efficiently through Transco’s power network system," said Mohamed Al Suwaidi, chairman of Taqa. "Taqa continues to showcase how its expertise can be utilised to decarbonise industry through strategic partnerships and bringing value to its stakeholders.” More than half of the value of the project, which aims to to strengthen Adnoc and Taqa's positions in supporting the UAE’s Net Zero by 2050 strategic initiative, will flow back into the UAE’s economy under Adnoc’s In-Country Value (ICV) programme. It will also attract large-scale investment into the UAE and Adnoc from global energy companies, reinforcing Adnoc’s role in sustainable investment and value creation for Abu Dhabi and the UAE. Combined investment from the consortium, commercial lenders and export credit agencies yielded more than $3bn in foreign direct investment, underscoring the UAE’s standing as a trusted global investment destination. “This innovative and first-of-its-kind project in the region is driving responsible and sustainable value creation into Abu Dhabi, further cementing the UAE’s standing as a trusted, go-to investment destination of global capital,” Dr Al Jaber said
  • 3. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 3 UK: IGas Energy responds to Government’s Written Ministerial Statement on shale gas extraction. Source: IGas IGas welcomes the Government’s support and commitment to the timely development of domestic gas as laid out in the Written Ministerial Statement (WMS) released today from the Department of Business, Energy and Industrial Strategy. We particularly welcome the commitment to “more exploratory sites in order to gather better data and improve the evidence base”. IGas looks forward to assisting with this process and will gladly provide the government with its detailed proposals for accelerated development. The full text of the WMS can be found at https://questions-statements.parliament.uk/written- statements/detail/2022-09-22/hcws295 As we have said before, the development of this strategic natural resource, which we believe is imperative in helping with the ongoing energy and cost-of-living crises, can only be achieved through further streamlining of the regulatory process. We look forward to further engagement with the Government as policy evolves. Commenting Chris Hopkinson, IGas Interim Executive Chairman said: 'This is a significant statement from Government and we welcome the commitment to pursue secure and affordable supplies of domestic energy. The development of IGas’ shale gas assets has the potential to provide secure and affordable energy for the UK in the near term, helping to decouple the UK from volatile and competitive international gas markets. Aside from the clear benefits in job creation and balance of payments through producing indigenous natural gas, we will support local communities with a comprehensive benefit package.'
  • 4. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 4 UK dishes out extensive tax cuts as country braces for recession CNBC - Jenni Reid + NewBase The new U.K. government announced a sweeping program of tax cuts and investment incentives Friday, as Prime Minister Liz Truss seeks to boost the country’s faltering economic growth. Speaking to the House of Commons, Finance Minister Kwasi Kwarteng said the government wanted a “new approach for a new era focused on growth” and was targeting a medium-term 2.5% trend rate in economic growth. KEY POINTS  The government will cancel a planned rise in corporation tax to 25%, reverse a recent rise in income tax, and cut taxes for businesses in designated investment zones  The Bank of England yesterday said the U.K. was likely already in a recession U.K. Chancellor Kwasi Kwarteng outside 10 Downing Street. Britain will cap the cost of electricity and gas for businesses. “We believe high taxes reduce incentives to work, deter investment and hinder enterprise,” Kwarteng said. The measures include:  Cancellation of a planned rise in corporation tax to 25%, keeping it at 19%, the lowest rate in the G-20.  A reversal in the recent 1.25% rise in National Insurance contributions — a tax on income.  A reduction in the basic rate of income tax from 20 pence to 19 pence.  Scrapping of the 45% tax paid on incomes over £150,000 ($166,770), taking the top rate to 40%.  Significant cuts to stamp duty, a tax paid on home purchases.  A network of “investment zones” around the U.K. where businesses will be offered tax cuts, liberalized planning rules and a reduction in regulatory obstacles.  A claim-back scheme for sales taxes paid by tourists.  Scrapping of an increase in tax rates on various alcohols.  Scrapping of a cap on bankers’ bonuses.
  • 5. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 5 The government estimates the tax cuts will total £45 billion by 2026-27. “It’s half a century since we’ve seen tax cuts announced on this scale,” said Paul Johnson, director of the Institute for Fiscal Studies. The pound fell to a fresh 37-year low against the dollar below $1.103 in the hours after the announcement, while investors ditched U.K. government bonds and the FTSE 100 fell to its lowest level since March. Johnson said markets appeared “spooked” by the scale of the “fiscal giveaway.” Sterling hits new 37-year low against the dollar It comes a day after the Bank of England said the U.K. economy was likely to have entered an official recession in the third quarter, as it hiked interest rates by 50 basis points to combat decades- high inflation. The economy contracted by 0.1% in the second quarter amid a squeeze in real incomes. Despite containing extensive reforms, Friday’s package is not being described by the government as an official budget as it has not been accompanied by the usual economic forecasts from the Office for Budget Responsibility. UK to cap domestic energy prices, end fracking ban Critics of the proposals warn that the combination of extensive tax cuts and the government’s plan to shield households and businesses from soaring energy prices will see the U.K. take on high levels of debt at a time of rising rates. The energy support package is expected to cost more than £100 billion ($111 billion) over two years.
  • 6. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 6 Data published Wednesday showed the U.K. government borrowed £11.8 billion in August, significantly above forecasts and £6.5 billion more than the same month in 2019, due to a rise in government spending. Kwarteng said Friday the U.K. had the second-lowest debt to GDP ratio in the G-7 and would announce a plan to reduce debt as a percentage of GDP in the medium term. On energy, he said price caps would reduce peak inflation by 5 percentage points and lower the wider cost-of-living pressures. He also announced an energy markets financing scheme, in conjunction with the Bank of England, that will offer a 100% guarantee to commercial banks who offer emergency liquidity to energy traders. The opposition Labour party argued that the tax cuts will disproportionately benefit the wealthy and be funded by unsustainable borrowing. Speaking in the Commons, Kwarteng’s Labour opposite Rachel Reeves called the plans trickle- down economics and quoted U.S. President Joe Biden, who this week said he was “sick and tired” of the policy and that it had never worked. ‘Seismic shift’ “As fiscal events go, this was a seismic one,” said Chris Sanger, head of tax policy at accountancy EY. “The reversal of the decision to deny VAT rebates for travellers leaving the UK, only implemented on leaving the EU, and the introduction of new super-powered special economic zone, reinforce the message that the UK wants to attract foreign direct investment and travellers. In essence, the government is doubling down on growth, providing tax cuts across the board,” he said in emailed comments. Shevaun Havilland, director general of the British Chambers of Commerce, said pledges to focus on growth and speed up infrastructure development would be welcomed by businesses. “The introduction of investment zones also has the potential to finally deliver on the Government’s long- standing promise to level up, if the scheme is truly UK-wide,” he said. “Lessons also need to be learned from the past, it will be crucial to get these zones right from the start, otherwise they can simply displace growth and investment from one area to another without creating new economic activity.” The Institute for Fiscal Studies, an economic research group, warned that “setting plans underpinned by the idea that headline tax cuts will deliver a sustained boost to growth is a gamble, at best.” Meanwhile Torsten Bell, chief executive of think tank the Resolution Foundation, said the policies were a “simply staggering huge tax cut for richer households.”
  • 7. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 7 Spain: Abdul Latif Jameel Energy unit to build solar plant in Spain TradeArabia News Service Leading developer of sustainable energy solutions Fotowatio Renewable Ventures (FRV), part of Abdul Latif Jameel Energy, has reached a financial close on the Carmonita Norte solar PV cluster in Extremadura, Spain. With a capacity of 123 MWdc, the Carmonita Norte cluster will be the first of the three projects that the Carmonita node will host. Covering an area of 356 hectares, the Carmonita Norte cluster will produce around 260 gigawatt hours (GWh) of clean energy per year, which is enough to supply energy to approximately 93,600 Spanish homes, while avoiding the emission of around 193,000 tons of carbon dioxide (CO2), said a statement. The Carmonita Norte cluster joins several solar photovoltaic projects that the company currently has in Extremadura both in operation (La Solanilla, 50 MWp, and the San Serván 220 cluster, 138 MWp divided into three projects), and under construction (the San Serván 400 cluster, 150 MWp divided into three projects), reaching a total of 461 MWp executed. Together with the solar projects currently under development, the total projects will deliver a forecasted 1.1 gigawatts (GW) in the region in South-West Spain. For the construction, FRV has reached a financing agreement under the Project Finance modality with MUFG, ING and Santander Corporate & Investment Banking (CIB) for a total amount of Euro 80.9 million. Once the plants are operational, the project's revenues will be guaranteed by a long- term Power Purchase Agreement or PPA. It is estimated that the first plant of the Carmonita complex will be fully operational by the end of 2023, which will contribute to the Long Term Decarbonization Strategy (LTS) promoted by the Spanish Government, which sets out the path to achieve Greenhouse Gas (GHG) emissions neutrality in Spain by 2050. Fady Jameel, Deputy Chairman and Vice Chairman of Abdul Latif Jameel, said: "FRV has made impressive progress in expanding its portfolio of renewable energy projects, not only in Spain, but around the world. This expansion is a testament to our commitment to delivering clean energy solutions in key global markets and we are proud to have the opportunity to bring clean energy to Extremadura while supporting Spain's broader decarbonization strategy." Fernando Salinas, Managing Director of FRV Iberia, said: "The financial closing of the Carmonita Norte cluster is great news for FRV, which continues to expand its clean energy portfolio in Spain and, thus, consolidate its role as a leading renewable energy company, as well as for Extremadura, which has unbeatable conditions to host projects that allow clean energy to continue growing, with the positive impact that this has both environmentally and on the local community, generating wealth and employment in the region." -
  • 8. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 8 China increased electricity generation annually from 2000 to 2020 U.S. Energy Information Administration, International Energy Statistics China has steadily increased its electricity generation over the past 20 years, reaching 7,600 terawatthours (TWh) in 2020 from 1,280 TWh in 2000, according to our recently updated Country Analysis Brief: China. Despite COVID-19 mitigation efforts in 2020, China still expanded its electricity generation by 5% in 2020. China has been increasing the share of non-fossil fuels in its electricity generation, but coal remains a predominant source. In 2020, China generated 4,775 TWh from coal-fired power plants, a 63% share of China’s electricity generation. In 2000, coal accounted for 77% of China’s electricity generation (992 TWh). In the intervening 20 years, non-fossil fuels, including hydroelectric, wind, and solar generation, grew to 27% (2,058 TWh) of China’s generation mix, from 17% (221 TWh) in 2000. Solar has been the fastest-growing generation source and grew by an average of 43% each year from 2015 to 2020. Solar accounted for 6% of China’s electricity generation in 2020. In 2021, China’s government issued its 14th Five-Year Plan (2021–2025) for National Economic and Social Development of the People’s Republic of China. The plan sets out China’s strategy for industry planning and policy through 2025 and prioritizes China’s low-carbon and carbon-neutral initiatives. The plan sets numerous goals, including to:  Achieve its goal to reach peak carbon emissions by 2030 after which its target is to have carbon emissions decline  Become carbon neutral by 2060  Reach a 39% non-fossil fuel share for electricity generation by 2025 Despite the carbon goals in China’s Five-Year Plan, coal will remain an important fuel in China’s electric power sector in the near term. In total, China approved 46.1 gigawatts of coal-fired power plant projects in 2020. Natural gas, however, is replacing some of the coal-fired capacity in the eastern region of China, where power demand is higher than in the rest of the country, and the northeastern region, where stricter environmental regulations have reduced coal-fired electricity generation. China remains the world’s most populous country, with a population of 1.4 billion people in 2020, and has a fast-growing economy. Our data show that in 2020, more energy was produced and more energy was consumed in China than in any other country. We expect that China’s energy demand will continue to increase.
  • 9. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 9 NewBase September 24 -2022 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil Set for Fourth Weekly Loss as Rate Hikes Darkening Outlook Bloomberg + NewBase Oil headed for the longest stretch of weekly losses this year as central banks around the world stepped up their fight against inflation at the cost of growth, which is darkening the outlook for energy demand. West Texas Intermediate futures fell 3.3% on Friday and was set for a fourth week of declines. The Federal Reserve this week gave its clearest signal yet that it’s willing to tolerate a US recession as the trade-off for regaining control of inflation, while the UK, Norway and South Africa also raised rates. Oil price special coverage
  • 10. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 10 WTI for November delivery retreated 3.3% to $80.75 a barrel as of 7:58 a.m. in New York. Brent for the same month declined 2.9% to $87.80. It’s putting crude on track for its first quarterly loss in more than two years. Prices are also being pushed lower by a surging dollar -- with the Bloomberg Dollar Spot Index rising to a record high on Friday -- making commodities priced in the currency more expensive for investors. The oil price decline is driven by a stronger dollar and “the aggressive monetary policy tightening,” said Giovanni Staunovo, a commodity analyst at UBS Group AG. If crude declines further, the Organization of Petroleum Exporting Countries may be forced to cut output, said Nigeria’s Oil Minister Timipre Sylva. The group and its allies earlier this month agreed to the first supply reduction in more than a year. There could be further turmoil ahead with a looming European Union ban on Russia oil. Separately, member states are also racing to clinch a political agreement within weeks that would impose a price cap on Russian oil. The push gained momentum after President Vladimir Putin this week announced a mobilization of troops, escalating the war in Ukraine. Some of the world’s biggest banks are, however, forecasting a rebound in prices because of low inventories, and sustained demand despite recession concerns. JPMorgan Chase & Co. forecasts Brent at $101 a barrel for the final quarter of 2022, while Goldman Sachs Group Inc. sees $125. “This is going to be a very, very volatile last quarter,” Amrita Sen, chief oil analyst at Energy Aspects Ltd., said in a Bloomberg television interview. There are “just too many different and contradictory factors driving prices right now,” she added.  OPEC may be forced to cut production, Nigerian minister says  WTI futures drop below $81 a barrel, down about 5% this week
  • 11. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 11 NewBase Specual Coverage The Energy world –September -24 -2022 CLEAN ENERGY A UK Shale Revolution? Expect More Bump Than Big Bang By Therese Raphael + NewBase If there was ever a time for a no-stone-unturned policy to secure the energy supply, this is it. Wholesale gas prices had already quadrupled in the six months before the invasion of Ukraine. This week, the new UK government is announcing huge public borrowing to help protect homes and businesses against soaring energy costs. It’s no wonder then that even fracking, barred in the UK since 2019, is back on the table. In her first week in office, Prime Minister Liz Truss announced plans to lift the ban, and the government is also reportedly considering raising the limits on seismic activity to give the industry more room for exploration. The fracking announcement is part of a push to show the government is deregulating in its all-out drive for growth. And it’s another example of Truss pushing against the grain of public opinion as she has on removing the cap on banker bonuses. But, it must be asked, to what end? Any payoff, if it comes, will be far in the future and not the domestic energy bonanza many had hoped. A lot depends on the UK having commercially viable reserves and sufficient public support for extracting them. The first is a hard “maybe” and the second runs up against a wall of local opposition that will be hard to displace. The founder and former public affairs director of Cuadrilla Resources Ltd. — the oil and gas exploration company that has been the UK leader in fracking — even say Truss’s move makes little sense under current conditions. Fracking may offer some contribution to Britain’s energy supply, but the benefits won’t be felt for some time and won’t be the revolution proponents once hoped.
  • 12. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 12 Hopes for fracking in the UK have long been stoked by the US shale experience, of course. As the American Petroleum Institute put it, “without fracking, there’d be no American energy renaissance — or the array of benefits it is providing to our economy, to individual households, US manufacturers and other businesses.” With its own gas-rich shale formations, it’s tempting to think this could be Britain, too. Domestic production from North Sea reserves peaked in 2000, and UK dependency on imported gas is expected to rise sharply between now and 2050, to 85%. Proponents have argued that shale gas could provide a secure, stable source of energy and help diversify supply as Britain moves toward net zero by expanding a resource whose extraction is less carbon intensive. It would create jobs and could also have a positive impact on the UK’s balance of payments since it would mean less money going out to foreign suppliers. Unexplored Shale Britain’s main shale-gas reserves overlap with urban areas Estimates of total gas in place in the north of England are significant, but they don’t tell us what part of the resource is commercially recoverable. In 2018, Cuadrilla Resources Ltd. noted that testing in its Lancashire site brought results indicating “excellent” shale gas reserves. Sand injected into the fractures stayed in place during the flowback phase, and the natural gas that came to the surface had a high methane content, suggesting less processing would be required to
  • 13. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 13 deliver it to the local grid. That sounded promising. But the company found that’s a long way to building a viable industry in the UK. One big obstacle is public support — or the lack of it. On a densely populated island where environmental awareness runs high, fracking is highly controversial. A moratorium was imposed in 2011 after two tremors with magnitudes of 2.3 and 1.5 around Cuadrilla’s Lancashire site. That moratorium was lifted, but by 2019 the Conservative government suspended all fracking permissions after more tremors near two wells operated by Cuadrilla in Lancashire. Labour, once an enthusiastic supporter, U-turned a few years earlier. Cuadrilla likened the tremors to “a large bag of shopping dropping to the floor,” but the backlash was enough to send the government into defense mode. The risks got exaggerated in the furor, but if Truss wants to revisit fracking, she’ll first have to redefine “earthquake” in the public’s mind. Most people prefer zero seismicity in their neighborhood, thank you very much. The UK isn’t prone to noticeable earthquakes, so people are more likely to find them alarming and official limits are lower than other countries, notes Ian Stimpson, senior lecturer in geophysics at Keele University. But fracking works by generating tiny quakes — of magnitudes of minus 1 or minus 2 on the Richter scale — to cause small fractures in rocks that release gas. (Every two notches up on the scale represent a thousand-times increase in energy.) The current magnitude 0.5 limit still can’t be felt at the surface, but a limit that low effectively stops all exploration since operators can’t guarantee they won’t exceed it. Because of its different geological profile to the US, there are pre-existing geological faults that make earthquakes of magnitudes 2 or 3 more likely, Stimson says. Those faults are too small to be accurately imaged without seismic monitoring systems. But that technology adds a considerable cost to drilling, as do other necessities such as modern wastewater management and finding ways to get community buy-in.
  • 14. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 14 And those costs would need to be piled on top of the other costs of doing business in the UK, which are considerable. “An operation that in the US, Canada and even Argentina is a rapid piece of keyhole surgery is in the UK a ponderous, slow-moving and costly operation,” wrote Cuadrilla founder and geologist Chris Cornelius and former public affairs director Mark Linder, who are no longer involved in the company. If shale-gas extraction does go ahead in the UK, it will probably be limited to certain small areas. The Vale of Pickering in Yorkshire, for example, has potential because conventional gas wells in operation are already there. “Boreholes just need to be deeper from the same site to penetrate the Bowland Shale. The lower infrastructure costs might make this more viable,” Keele’s Stimpson says. The government is holding a report from the British Geological Survey, which is expected to offer scientific support to the new plans. There’s nothing wrong with reopening those wells under the right circumstances. But none of the regulatory changes would get UK shale through the many-step process from estimated reserves to a mature industry overnight. Nor is the shale debate a replacement for other measures such as increasing investment in renewables, exploring the potential for geothermal heating and reducing demand through better insulation in famously drafty British homes. If anything, it will bring a modest bump in the UK’s energy landscape, but not the once-hoped-for big bang. Expected UK grid mix composition in 2035, in terms of total electricity generated
  • 15. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 15 NewBase Energy News 24 September 2022 - Issue No. 1552 call on +971504822502, UAE The Editor:” Khaled Al Awadi” Your partner in Energy Services NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE. For additional free subscriptions, please email us. About: Khaled Malallah Al Awadi, Energy Consultant MS & BS Mechanical Engineering (HON), USA Emarat member since 1990 ASME member since 1995 Hawk Energy member 2010 www.linkedin.com/in/khaled-al-awadi-38b995b Mobile: +971504822502 khdmohd@hawkenergy.net or khdmohd@hotmail.com Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S. Universities. Currently working as self leading external Energy consultant for the GCC area via many leading Energy Services companies. Khaled is the Founder of the NewBase Energy news articles issues, Khaled is an international consultant, advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste management, waste-to-energy, renewable energy, environment protection and sustainable development. His geographical areas of focus include Middle East, Africa and Asia. Khaled has successfully accomplished a wide range of projects in the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted & finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over 1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste management, plant Automation IA and environmental sustainability in different parts of the world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see contact details above.
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